NOTEBOOKS: The Growth Opportunity Is Here

For notebooks, 2003 was a year of change from a market perspective. In the
sense that importance of mobility came into prominence, demand started to show
up and competitive landscape became as exciting as ever. Also to mention, it was
last year that IBM, as a company achieved a leadership position in the mobile
computing space.

Also, in a quest to further grow this market, vendors brought down notebook
prices to sub-40K levels. This helped the business (in unit terms) grow by over
70% in 2003-04 as well as propelled IBM to make competitive offerings in the
entry-level space.

2004 is a year of growth as well as consolidation. IDC estimates nearly 1.5
lakh units to get sold this fiscal there is a lot of excitement about the growth
potential that this business holds. While India still has a long way to go in
the mobile computing space as compared to other developed economies, a
significant change in the equation between desktop and notebook growth rates is
expected.

NOT JUST PRICE-DRIVEN

Few sectors like education and government will actively drive the adoption
of notebooks. For educational organizations, notebooks will emerge as a key tool
to differentiate themselves from their contemporaries. B-schools and many such
establishments offering professional courses will use notebooks and wireless
connectivity as attractive features to pull in students.

In the government too, currently the notebooks are largely made available at
the director's level or other high managerial positions. This scenario will
change wherein people at mid-managerial positions will also go for notebooks and
the penetration of the same will sharply surge.

However, despite the increasing adoption, price will not be the only USP that
vendors would be able to pitch their products on. We believe differentiation-in
terms of technology, service and support, will be the key. While a section of
customers will continue to go for lowest-priced models, a larger user base will
raise the question - "Do features outweigh price?"

Percolation of wireless connectivity will impart a strong impetus to the
overall adoption of notebooks and de-licensing of the 802.11b spectrum for
outdoor usage will further add to the traction that one can currently see in the
mobility space. With more service providers offering wireless services and
uniform billing mechanisms brought into practice, Wi-Fi usage could be made to
surge. This is in turn will have a direct and positive impact on notebook sales.

However, challenges are many in this business and to ensure that laptops
occupy the place that desktops enjoy today, one would have to go that extra
mile.

SANJEEV MENON is Brand
Manager-Mobile Computing, IBM India.